-as prices hit all-time high
As gold briefly hit an all-time high of US$1300 per ounce yesterday, the Guyana Gold and Diamond Miners Association (GGDMA) called on miners to increase production and declarations.
In a statement, Executive Director of the GGDMA, Edward Shields, said he hoped miners will take full advantage on the current high price of gold and capitalise on it by selling more of their gold and increasing their production. He noted that this is an opportune time for profit and it will also allow for Guyana to get more value for the production.
The GGDMA said that it wants to see declarations increase, noting that for every 1000 ounces sold the Government earns almost $17M from royalties and taxes. “The high prices now mean that the Government of Guyana will collect even more benefits from the mineral resources of the country. The GGDMA is therefore urging all miners to work with this national interest in mind,” Shields said. He explained that miners have to demonstrate to the government that they are willing to go the extra mile to ensure that Guyana can maximise its benefits from gold mining.
Gold won in the interior has to be sold to the Guyana Gold Board or to licensed dealers in order for the royalties and taxes to be calculated and paid. The GGDMA noted that it is through the payment of these dues that national development work can continue to progress. According to the GGDMA, miners must recognise that the selling of their gold to the Gold Board and other legal buyers is an overt demonstration of the contribution of mining to the development of the Guyanese economy. “It is important, now more than ever, to demonstrate our commitment to Guyana in order to ensure our survival. We implore all of our members to sell all minerals won only to legal buyers or the Guyana Gold Board”, the statement said. The association as part of the Land Use Committee has been discussing new rules for the mining industry and in recent times have indicated that it was “uneasy” given the state of the discussions.
The statement noted that the GGDMA has set an ambitious gold production target of over 400,000 ounces of gold for 2010. While they have managed to clear the halfway mark there have been numerous challenges in reaching this target. The association in an earlier statement noted that more than 40% of mining operations have been affected by bad weather and this has significantly hindered the industry’s ability to reach the target. At present, gold declaration is below what the association had projected.
